What a Binding?

Binding can be used in many different cases for example if you use it as a restriction like in a contract you can bind a person to do some actions and only then he's going to get paid. Also the word can be used to oblige somebody to do an action also in a contract. For example you bind transport company to deliver the goods to a specific place and it has a predefined time span for it, so in common terms you oblige the company where and when to deliver.

Binding is also related to tariff binding which means that GATT members agree on a maximum tariff on a given product. This action helps stabilizing the prices of products in case there are major fluctuations in prices and GATT members will gain compensation if the price goes over the maximum sum agreed upon.